A report from a commission chaired by industry veteran Sir Ian Wood has concluded Scotland is not doing enough to equip its youth for the world of work.

In the final report from the Commission for Developing Scotland’s Young Workforce, Sir Ian says youth employment must be cut be nearly half by 2020 in order to boost economic growth.

It also recommends business and employers adopt a more active role in working alongside schools and colleges.

The commission recommends Scotland should aim to cut youth employment to below 30,000 in line with the five best European countries by 2020.

Official figures published earlier in the year suggest nearly a fifth (18.8 per cent) of 16-24year-olds are currently out of work, which is more than double the average of the working age population and higher than many other European countries.

The commissions recommendations estimate if all measures contained in its report are implemented, youth unemployment could be cut by as much as 40 per cent.

The commission recommends schools and employers forge stronger ties to provide education which will lead successfully to employment.

The report states: “We are simply not preparing or equipping these young people for the world of work.

“There must be much more focus on providing them with the skills, qualifications and vocational pathways that will lead directly to employment opportunities.

“It is also clear that employers have lost the habit of employing young people.

“Only 29 per cent of employers recruit young people from education and only 13 per cent of employers take on apprentices.

“Business and industry must be encouraged to work together with education and young people, and vice versa, to establish pro-active and engaged relationships which will benefit both young people and employers.”

Angela Constance, the Youth Employment Secretary, said Sir Ian had set out "a challenging programme to transform the way we work with young people, employers, schools and colleges".

She added: “Our ambitions to see significant improvements in our youth employment numbers go beyond a return to pre-recession levels when, during a period of growth, youth employment stood at 7.7 percentage points above that of the general population.”

Commenting on the reports findings, Scottish Chambers of Commerce chief executive, Liz Cameron, said the report was a “landmark moment for the way in which Scottish business, the Scottish education system and the Scottish Government engage”.

She said: “For too long there has been a lack of recognition and support at a school level of those young people who wish to pursue vocational training and education.

“Whether by accident or design, a narrow focus on academic attainment within schools has emerged and it is time to complement this with the skills and knowledge that will allow young people to better access valuable and profitable opportunities on the vocational side.

“Scotland’s education system, at school, college and university, must change in order to allow for formal, structured careers guidance, delivered in conjunction with real local businesses to provide our young people with all the information they need to make the right choices for their future careers.

“That means that businesses must step up to the plate and that the public sector must embrace true partnership working that delivers directly both for young people and for the future needs of business and our economy.

“ Things must change fundamentally – more of the same is simply not an option."